Together, one of the UK’s specialist lenders, has announced the issuance of £500m in six-year bonds at a coupon of 5.25%.
The finance company increased the fund raising by £50m from its initial offering, following ‘significant demand’ from investors, a spokesman for the company said.
The Manchester-based lender said proceeds from the issuance will be used to redeem £350m of existing bonds due to mature in 2024 and to support further growth in lending.
Marc Goldberg, commercial CEO at Together said the issuance “shows how strong Together is thought of in the market place” and remains in a “strong position” to support current commercial and personal finance customers and new borrowers, despite the challenges posed by a third national lockdown, which could last until the spring.
He said: “We are delighted with the success of the transaction, our second fund raising during the pandemic.
“The new issuance, which is our largest bond to date, was upsized by £50 million on the back of strong investor support and provides additional headroom as we continue to shape our business for an exciting future.”
Pete Ball, personal finance CEO at Together, said the latest bond offer follows the success of the group’s fourth – and largest – public residential mortgage-backed securitisation of £370m in July.
He said: “We continue to diversify and add depth of maturity to our funding platform to support our lending ambitions.
“We were delighted to be the first company to issue a sterling bond since the completion of the Brexit process. The transaction received strong demand from high quality investors and was many times over-subscribed.”
Citigroup and Goldman Sachs International acted as the joint bookrunners for the issuance of the bonds.
Based in Cheadle, Greater Manchester, Together employs more than 530 colleagues and has a loan book of more than £4bn.